Labor Compliance

The South Dakota Department of Transportation, as the contracting agency, has the responsibility and authority to monitor and enforce compliance with the labor provisions contained in the department's Federal-aid construction contracts exceeding $2,000 and in the non-Federal funded construction contracts where the award meets or exceeds $100,000. The labor provisions also apply to all related subcontracts of the Federal-aid and non-Federal funded highway construction contracts.

The Davis-Bacon & Related Acts (DBRA) labor provisions apply to all mechanics and laborers working on the site of the work. Contractors and subcontractors that have laborers and mechanics working on the site of the work must ensure that:

The employees will be paid unconditionally and not less often than once a week; and

The employers will not withhold unauthorized payments from the employees' wages [except payroll deductions permitted by 29 CFR 3]; and

The payments shall be computed at not less than the wage rates contained in the contract for the actual types of work performed by the employees, without regard to skill; and

Overtime compensation shall be paid at a rate not less than one-and-one-half times his/her basic rate of pay for all hours worked in excess of 40 hours in a work week; and

The full amount of wages and bona fide fringe benefits (or cash equivalents) due to the employees shall be paid to the employees within seven days following the end of each such work week.

Any failure by an employer to compensate an employee for all hours worked at no less than the prevailing/required minimum wage rate, plus warranted overtime, should be reported to Laurie Gustafson, Labor Compliance Officer, at (605) 773-3795. Email address: Laurie.Gustafson@state.sd.us